Finding the Hole in

Finding the Hole in the Boat: The Four Essentials of Strategic Thinking By Dr. John Dentico

Is your organization spending too much time seemingly rearranging deck chairs on the Titanic? Are the senior decision makers consistently voicing the need to make substantial change in the face of a complex and dynamic environment yet no real change takes place? Is the organization spending a great deal of time planning strategically but the answers to the questions keep coming out the same? Perhaps the problem is not with the answers, but with the questions. Perhaps strategic planning, a management process, is inappropriate for finding the path to change. Instead what is required is a leadership process, such as strategic thinking, that calls into question all the questions being asked. Looking for the Right Questions Simply stated, if an organization does not do strategic thinking before it does strategic planning, it is the same as rearranging those deck chairs. Why? Because in the end no one really cares where the deck chairs are positioned on the lounge deck if there is a great big hole in the boat, i.e., the big hole in the boat presents a much more pressing problem. Strategic planning is about finding the right "answers" to questions. In strategic planning the questions already exist, they have been decided. On the other hand, strategic thinking is an imaginative process designed to assure that key decision makers are asking themselves the right questions. Strategic thinking does not start with a set of questions. It starts with the proverbial clean sheet of paper. Decision makers form no preconceived questions, disregard any ideas of what works and what does not, making no assumptions about the organization. Optimally, the process includes a healthy vertical and horizontal cross section of the organization. RuralLeaderMagazine.com | MAY/JUNE 2015 19 Why? Because you never know where the most valuable information might come from. But more than that, strategic thinking is an effort to develop industry foresight. As Gary Hamel and CK Prahalad write in their book Competing for the Future, industry foresight often starts with what could be, and then works back to what must happen for that future to come about. Questions are the root of all knowledge, and crafting the right questions provides senior decision makers the ability to imagine the future in the context of present and future risks and threats.

An Overview of a Strategic Thinking Process Threats or Risksstart with that clean sheet of paper. The process begins with assessing the threats or risks, both internal and external, to the organization. Said another way, it is vital for the senior decision makers to know the internal and external forces impacting their future. Emerging trends in technology, new competitors, customer service, and succession planning could all pose different types of risks or threats. The idea is to get everything on the table so that it is in full view of the decision makers. Strengths-R&D investment, financial structure, timely distribution, active web and Blog presence and developing people may very well be strengths of the organization. Strengths provide leverage that can be used to gain specific industry advantages or buffer weaknesses. For example, the organization may have a robust web and Blog presence on the Internet having cultivated a large loyal fan base. These relationships are a substantial strength that can be used to assess and develop new products and services.

Weaknesses-What is it that the organization is not doing so well, that needs improvement or is having a negative systemic effect on the rest of the organizations operations or administration? Seeking weaknesses is not an exercise in seeking blame. Inappropriate organization structure, human capital retention, lack of leadership development programs may well be some of the issues that emerge as weaknesses. Gaps-Identifying the gaps between the strengths and weaknesses as they relate to the real and perceived risks require some type of response and become the grist for the strategic planning mill. Now strategic and tactical strategies can be created, resources and assets assigned and prioritized and the day-to-day job of creating the future and closing the gaps is turned from imagination into reality. Conclusion In our rapidly changing, complex world filled with more information than one might have imagined just a few years ago, sorting through the facts, the hype and emerging issues and challenges drives the need to continually rework the organization’s collective foresight. To do otherwise, may result in a small leak turning into a big hole leaving the crew and passengers scampering for the lifeboats saying to themselves, “But I thought we were unsinkable!”— About the Author

Dr. John Dentico is a nationally and internationally recognized subject matter expert in leadership and experiential learning and is the president of LeadSimm LLC. The major focus of his company's work centers on the key issues and challenges surrounding emergency preparedness. John is the creator of the LeadSimm Leadership Development Simulation method. For more info, visit LeadSimm. com